12/01/2010
by Andy Eubank
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When farmers close the books on 2010, many of them will see a big improvement in receipts and possibly record incomes. Those are indicators from the just released USDA income forecast, and the department’s analysts acknowledge they were off on their February forecasts for this calendar year’s farm income. The forecast jump is $7 billion higher than the August number, and the total comes in at $92.5 billion.
Joe Glauber, USDA Chief Economist says that figure is “almost a third higher than what the net cash income level was in 2009.”
That would also be a new record high. “The previous record was back in 2008 at $90.4 billion. So that’s almost $2 billion higher.”
In February forecasters said crop producers might end up getting lower cash receipts this year, but Glauber says “it looks like they’ll be almost $10 billion higher.”
The reason for the rosier picture is higher grain prices, oil seeds and cotton prices.
And USDA has raised their fiscal year 2011 export forecast dramatically. The forecast has the U.S. doing record exports and Glauber says the biggest gains are in grains, soybeans, and cotton.
The new export number is $126.5 billion, 13.5 billion more than USDA forecast in August, and an increase of $17 billion over 2010. The forecast is also for a record ag trade surplus of $41 billion.
Joe Glauber, USDA Chief Economist says that figure is “almost a third higher than what the net cash income level was in 2009.”
That would also be a new record high. “The previous record was back in 2008 at $90.4 billion. So that’s almost $2 billion higher.”
In February forecasters said crop producers might end up getting lower cash receipts this year, but Glauber says “it looks like they’ll be almost $10 billion higher.”
The reason for the rosier picture is higher grain prices, oil seeds and cotton prices.
And USDA has raised their fiscal year 2011 export forecast dramatically. The forecast has the U.S. doing record exports and Glauber says the biggest gains are in grains, soybeans, and cotton.
The new export number is $126.5 billion, 13.5 billion more than USDA forecast in August, and an increase of $17 billion over 2010. The forecast is also for a record ag trade surplus of $41 billion.
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